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Hi
I've just passed B1 and B2 but am about to take the mock exam for B3.
I'm studying this independently rather than through a training school so I've no one to ask about this.
In the Kaplan text book, it states that to enter an invoice into Sage that provides for an early settlement discount, you should calculate the net (minus any bulk or trade discounts), calculate the early settlement discount on this amount and then calculate the VAT on the early settlement amount.
It then says when entering the invoice, enter the net amount as the net amount (ie the total minus the bulk/trade discount) but to enter the VAT as the adjusted VAT as if they had already taken the early settlement discount.
I can't wrap my head around this as, at this stage, we don't know if they are going to accept the early settlement discount, so why would we enter the VAT as adjusted for early settlement? Wouldn't we enter it as normal and then adjust everything if and when a customer takes up the early settlement discount?
What am I missing? I don't want to take the exam and not know which I should be entering. The above seems strange to me.
Thanks
Yvonne
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